Banks tip another rate rise after inflation figures
Unexpectedly strong inflation figures have forced a rethink on interest rates, with three out of four big banks now tipping the RBA to hike rates again by Melbourne Cup day.
AAP reports economists at NAB and Commonwealth Bank followed ANZ in changing their rates forecast on Thursday.
ANZ was the first of Australia’s biggest lenders to switch their call from an extended hold to one more rise on Wednesday, after July consumer price figures showed underlying inflation rose 0.5% in the month, well above expectations.
While ANZ and CBA predict the Reserve Bank will lift the cash rate in November, NAB experts think it will be even sooner, forecasting a hike at the central bank’s next meeting in September.
Even though headline inflation slowed on an annual basis from 3.8 to 3.5%, the broad-based rise in underlying inflation suggests the RBA’s preferred quarterly trimmed mean measure will probably come in above 1% in September, NAB said.
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Updated at 22.36 EDT
Key events
Two WA men arrested over alleged involvement in cybercrime syndicate linked to 500,000 stolen credentials
Two men from Western Australia have been charged as part of an alleged cybercrime syndicate authorities say created malicious software to rob thousands of businesses around the globe.
The Australian federal police, WA police and the US FBI said in a joint release the men were charged with a combined 14 offences. Police will allege they were part of a “highly organised syndicate” that involved “large-scale cybercrime offending, including data intrusion, identity crime, and cryptocurrency-based money laundering”.
Police will allege the syndicate inserted malicious code into software on an open-source platform, which was then used unwittingly by other developers. That infected software was then distributed to computer systems across governments, academia and the private sector which allegedly allowed the syndicate to harvest or steal data.
Police allege the code compromised more than 1,000 organisations and enabled the theft of more than 500,000 credentials. The financial impact is expected to be hundreds of millions of dollars in global remediation costs.
The men, aged 21 and 23, are scheduled to appear in court today.
Updated at 00.29 EDT
Kate Lamb
Glacial collapse caused huge flood leaving hundreds dead or missing in Nepal and Tibet
A glacial collapse triggered the catastrophic flash flood in Nepal and Tibet that roared down valleys, wiping out entire villages and leaving a preliminary death toll of at least 165 people, the US Geological Survey said. Rescuers on Thursday raced to locate the hundreds missing, including nationals from India, the US, UK, Australia and Canada.
A security force member and his sniffer dog search for survivors. Photograph: Navesh Chitrakar/Reuters
Early reports from Nepali officials initially suggested an earthquake in the area could have caused the lower part of a glacier to collapse and trigger the floods. But the US Geological Survey later said what was initially reported as a 4.4 magnitude earthquake was a seismic shock generated by glacial rock and ice collapsing and the flow of debris. “No earthquake had occurred.”
An initial study of Planet Labs satellite imagery indicated that a landslide of ice and rock triggered the debris-laden flood in the Lhende River, about 20km north-east of the Nepal-China Rasuwagadhi border crossing, Nepal’s national disaster authority said. Experts say the risk of such events is compounded by the extreme topography of the Himalayas.
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Updated at 00.06 EDT
Tim Jonze
Japanese artist Yayoi Kusama dies aged 97
Yayoi Kusama, the Japanese outsider artist who reached superstar status after decades living in a psychiatric hospital, has died aged 97.
Kusama died in a Tokyo hospital on 14 August, her studio announced in a statement on her website on Thursday.
“Throughout an extraordinary lifetime devoted entirely to artistic creation, Kusama pursued an internationally acclaimed career as a pioneering avant-garde artist whose creative practice encompassed visual art, performance, fiction, and poetry,” the statement read.
double quotation markShe continued to paint until her final days, never setting aside her brush, and continued exploration of forever love and eternal soul.
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Japanese artist Yayoi Kusama, in 2012. Photograph: Kirsty Wigglesworth/APShare
Andrew Messenger
Queensland parliament farewells former Labor MP Jimmy Sullivan
Queensland parliament has held a condolence motion for the family and friends of former Labor MP Jimmy Sullivan, who died in April.
Sullivan followed in the footsteps of his father, Terry, a fellow Stafford MP, who watched on from the public gallery on Thursday as a string of Labor MPs shared their memories.
A number of MPs spoke through tears. Many said they’d known Sullivan for decades, at law school, serving as a staffer in the Paluszczuk government or in young Labor.
The Labor leader, Steven Miles, told parliament that when they were younger “Jimmy was the one we all agreed would make it”.
“While most of the rest of us scrapped our way to get ahead, Jimmy seemed set up,” the former premier said.
double quotation markCharming, funny, smart, popular – he had a way of drawing people to him.
Jimmy Sullivan, seen in 2020. Photograph: Darren England/AAP
The Labor whip, Mark Ryan, called Sullivan “the sentinel of Stafford”, a man who knew people’s names, and whose electorate office was always open.
Bundaberg MP Tom Smith said the last time he had spoken to Sullivan, the father-of-two told Smith his child had just learned how to call him “daddy”.
“That’s the memory that I want to remember. Jimmy Sullivan, who was proud to be a father, who was so happy to know that he was loved by his family,” he said.
Labor retained Stafford at a byelection in May.
Updated at 23.40 EDT
Achol Arok
Wong confirms additional Dfat personnel being deployed to Nepal
The foreign affairs minister, Penny Wong, says extra Dfat personnel have been deployed after deadly flash floods swept through the Nepal-Tibet border.
Speaking to the media in Adelaide, Wong said:
double quotation markWe are currently deploying further Dfat personnel, including crisis response, to the area.
I would anticipate that support will be needed. If you look at the footage and the destruction, we know this is a country that may not have the resources that will be needed to deal with the recovery by themselves.
With at least 34 Australians among those missing, Wong said the focus remains on finding them with the support of the Nepali government, the UN, the Red Cross and other humanitarian organisations.
double quotation markThe first point for us is to try and ascertain Australians’ whereabouts and wellbeing. And secondly, we will look at what government assistance we can provide in the near future.
I would say to you at this stage, access and information are very limited given the scale of the disaster. We will do our best to confirm and ascertain whatever information we can.
Updated at 23.12 EDT
One dead and two injured in Canberra crash involving car and cyclists
One person has died and two others are in hospital after a “serious traffic incident” in Canberra reportedly involving three cyclists and a car.
ACT policing said the incident took place at about 6.30am on Gungahlin Drive. One person died at the scene and two were taken to Canberra hospital, one in a critical condition.
The driver involved in the collision is assisting police with their inquiries. The road is closed in both directions during the investigation and police said an hour ago it was expected to remain closed “for some time”.
It’s the 10th road fatality in the ACT this year.
Updated at 23.14 EDT
Aircraft debris found in waters off NT coast where pilot crashed
Aircraft debris has been found in waters off remote islands in Australia’s north where a search is under way for a missing pilot after his plane crashed into the sea, AAP reports.
An Air Frontier twin-engined Beechcraft Baron aircraft went missing after taking off from Gove airport at Nhulunbuy on the Northern Territory coast with only the pilot aboard. The air charter company’s plane was due to land at the remote Indigenous community of Numbulwar at 11.50am on Tuesday but never arrived.
A search led by Northern Territory police began after a witness on a vessel reported seeing the plane crash into the sea near Isle Woodah.
Police divers have been deployed to conduct searches of the sea floor in the vicinity of the crash site.
Search mission coordinator, Acting Sergeant Nathan Conelius, on Thursday told ABC Radio that in “a little bit of good news” aircraft debris had been found in the search area on Wednesday.
double quotation markThat’s helped refine our search planning so we are more hopeful today of finding something else.
There were strong sea currents in the area that could move debris, he said.
Air Frontier CEO Kylie Hunt said the company was “deeply saddened” by the accident and her thoughts were with the pilot and their family.
As a precautionary measure, the company has grounded all five of its Beechcraft Baron aircraft pending advice from authorities.
The Australian Transport Safety Bureau has initiated a crash investigation.
Updated at 23.13 EDT
Henry Belot
Australian man fears friends in Nepal have died
An Australian man says two of his friends who were working as tour guides on the border of Nepal and Tibet are feared dead after flash flooding.
Suman Shrestha says the two men cannot be contacted and last spoke to their families around 9am on Wednesday. He says their families are desperately seeking answers.
double quotation markI can see that lots of my friends are missing. This happened along a trekking line and they work as tourist guides.
It’s hard. One of them is my close friend’s brother. The other lived near my home in Nepal. I know them well. They were helping the tourists on their trips.
Their families know that they have been trekking in this area and now they cannot contact them.
The families are trying to get in contact with the government, but there is no proper way to search for them. There are no phone lines, there is no wifi. There is no way to contact them.
Updated at 22.18 EDT
Three in four major banks now predict another RBA rate hike
Patrick Commins
The fallout from Wednesday’s hotter than expected inflation number continues, with NAB now predicting the Reserve Bank will deliver a fourth rate hike next month, while CBA joined ANZ to now pencil in an increase to 4.6% in November.
Consumer price growth fell to 3.5% in the year to July, from 3.8%, but that was far less than hoped – analysts had predicted it would drop to 3.3%.
Even more concerning was underlying inflation – which removes the most volatile prices – which held at 3.6% through the year.
By either measure, inflation is far above the 2.5% the RBA is hoping to reach by the end of next year, and economists reckon one bad month will be enough to force the central bank’s hand. NAB economists led by Sally Auld wrote this morning:
double quotation markThe RBA has repeatedly signalled in recent weeks that the monetary policy board would act if upside risks to inflation were realised.
The NAB team even warned that there was a risk of a further hike in November if the economy “shows resilience” in coming months.
Belinda Allen, CBA’s head of Australian economics, also pencilled in a November hike, warning it could come in September. Allen said:
double quotation markThe path back to the RBA’s target band was always expected to be gradual and left little room for upward surprises to inflation or growth.
That leaves Westpac as the only major bank not expecting higher rates this year.
Justin Smirk, a senior economist at Westpac, said the RBA will wait for a fuller picture in the September quarterly inflation report before drawing any firm conclusions.
“One month is not a trend,” Smirk said.
Updated at 22.23 EDT
Lisa Cox
Environment group disappointed by H5 bird flu funding announcement for wildlife
The Invasive Species Council has described a government announcement of an additional $20m for wildlife affected by H5 bird flu as “deeply unserious”.
The Albanese government said it would boost biosecurity spending by $125m in response to the deadly virus, in a cost-sharing arrangement with state and territory governments.
It has committed a further $20m specifically for wildlife – 10% of the $200m conservation groups had called for. The government said it would seek matched contributions from the states and territories.
Invasive Species Council chief executive Jack Gough said:
double quotation markTwenty million dollars for wildlife resilience in the face of a wildlife disease that puts almost one in five of our native mammals and birds at high risk of severe population decline is deeply unserious.
Gough pointed to the $2.5bn bailout package recently announced by the federal and NSW governments for the Tomago aluminium smelter:
double quotation markRight now nature needs a bailout, but the government couldn’t even find 1% of that investment.
The environment minister Murray Watt said the wildlife funding built on money already spent over “several years” preparing for the arrival of H5 bird flu:
double quotation markAs a result, our most at-risk species are in a better position to withstand and recover from the impacts of this virus.
Updated at 21.56 EDT
Nepali tour operator has lost contact with group including 15 Australians, just ‘1%’ hope they have survived
Nino Bucci
A Nepali tour operator says he fears that 15 Australians trekking with his company in a valley ravaged by flash flooding have died.
Sagar Pandey, the founder and chief executive of Himalayan Glacier Trekking, said he has lost all contact with his tour group of 47 people, which included 15 Australians.
The missing Australians are aged 11 to 64.
He has since flown over the area where the tour was staying in a helicopter and said he has little hope they survived. He told Guardian Australia:
double quotation markThe flash flood swept away everything, everything, you couldn’t see any human creations at all.
Still, I have a hope, but like 1%; the rest I don’t have a hope, they are missing and missing and missing.
Updated at 22.18 EDT
Banks tip another rate rise after inflation figures
Unexpectedly strong inflation figures have forced a rethink on interest rates, with three out of four big banks now tipping the RBA to hike rates again by Melbourne Cup day.
AAP reports economists at NAB and Commonwealth Bank followed ANZ in changing their rates forecast on Thursday.
ANZ was the first of Australia’s biggest lenders to switch their call from an extended hold to one more rise on Wednesday, after July consumer price figures showed underlying inflation rose 0.5% in the month, well above expectations.
While ANZ and CBA predict the Reserve Bank will lift the cash rate in November, NAB experts think it will be even sooner, forecasting a hike at the central bank’s next meeting in September.
Even though headline inflation slowed on an annual basis from 3.8 to 3.5%, the broad-based rise in underlying inflation suggests the RBA’s preferred quarterly trimmed mean measure will probably come in above 1% in September, NAB said.
Read more here:
Updated at 22.36 EDT
Henry Belot
Buddhist temple to hold ‘special prayer’ service for Nepalese community in Australia
The Australian Nepalese Multicultural Centre (ANMC) in Victoria will be holding a prayer service in its temple tonight for members grappling with the loss of life.
A spokesperson for the centre in Melbourne’s north-western suburbs says it is “deeply saddened” by the loss of life.
double quotation markOur thoughts and prayers are with everyone affected by this tragedy. We extend our heartfelt condolences to the families and loved ones of those who have lost their lives, and we pray for the safe rescue and return of those who are still missing.
At this difficult time, [we] stand in solidarity with the affected communities, rescue teams and everyone supporting the ongoing response.
ANMC will hold a special prayer today, Thursday 27 August, at 6:30pm at the ANMC Temple. We invite community members to join us in prayer for those who have lost their lives, those who remain missing, the injured and all families affected by this disaster.
May those who have lost their lives rest in peace, and may strength and hope be with all those affected.
Updated at 21.25 EDT